Overview about SKS Microfinance

SKS started off in 1997 as an NGO dedicated to the economic and social empowerment of the rural population. In the year 2000, it won the CGAP Pro-Poor Innovation Award for its work pioneering a pilot SmartCard project, and subsequent awards, accolades, and grants until in 2004, ICICI bank forwarded a partnership loan of Rs.20 crore to SKS, setting it on the path to even greater achievements.

SKS Microfinance has loan products on offer today that are specifically aimed at providing the economically weaker sections of society a way to build a sustainable livelihood.

SKS Microfinance Income Generation Loan (IGL) Aarambh

Minimum loan amount for the first loan: Rs.9,100.

Maximum loan amount for the first loan: Rs.20,010.

Subsequent loan will be disbursed for higher amounts.

Maximum loan amounts depend on the borrower’s credit history and past performance with repayment.

Loan amounts are increased in set increments for eligible borrowers.

Maximum loan amount under this scheme: Rs.29,565.

Term: 50 weeks.

Repayment frequency: Weekly.

Interest rate:19.75%.

Processing fee: 1%.

The loan can be taken for the purpose of:

Starting and running kirana stores.

Raising livestock.

Providing tailoring and related services.

Providing other services that can generate a sustainable income and require running capital / investment for asset acquisition.

SKS Microfinance Mid-Term Loan (MTL) Vriddhi

Minimum loan amount for the first loan: Rs.9,100.

Maximum loan amount for the first loan: Rs.15,010.

Subsequent loan will be disbursed for higher amounts.

Maximum loan amounts depend on the borrower’s credit history and past performance with repayment.

Loan amounts are increased in set increments for eligible borrowers.

Maximum loan amount under this scheme: Rs.15,010.

Term: 50 weeks.

Repayment frequency: Weekly.

Interest rate: 19.75%.

Processing fee: 1%.

The loan can be taken for the purpose of:

Starting and running kirana stores.

Raising livestock.

Providing tailoring and related services.

Providing other services that can generate a sustainable income and require running capital / investment for asset acquisition.

The loan is available between the 19th and 46th weeks of the Income Generation Loan Cycle, and between the 19th and 96th weeks of the Long Term Loan Cycle.

SKS Microfinance Long Term Loan (LTL)

Minimum loan amount for the first loan: Rs.30,915.

Maximum loan amount for the first loan: Rs.38,635.

Subsequent loan will be disbursed for higher amounts.

Maximum loan amounts depend on the borrower’s credit history and past performance with repayment.

Loan amounts are increased in set increments for eligible borrowers.

Maximum loan amount under this scheme: Rs.49,785.

Term: 2 years 104 weeks.

Applicants must have already successfully completed two Income Generation Loan (IGL) cycles.

Repayment frequency: Weekly.

Interest rate: 19.75%.

Processing fee: 1%.

The loan can be taken for the purpose of:

Starting and running kirana stores.

Raising livestock.

Providing tailoring and related services.

Providing other services that can generate a sustainable income and require running capital / investment for asset acquisition.

Increasing working capital for members’ businesses.

Biomass cook-stove loan:

Minimum loan amount: Rs.1,799.

Maximum loan amount: Rs.5,290.

Tenure: 25 weeks.

Interest rate:

Minimum: 19.60% p.a.

Maximum: 19.70% p.a.

The loan can be taken for the purpose of purchasing a biomass cook-stove to improve their income generation capabilities and / or enhance productivity.

Solar Light loan:

Minimum loan amount: Rs.1,799.

Maximum loan amount: Rs.5,290.

Tenure: 25 weeks.

Interest rate:

Minimum: 19.60% p.a.

Maximum: 19.70% p.a.

The loan can be taken for the purpose of purchasing a solar light to improve their income generation capabilities and / or enhance productivity.

Water Purifier loan:

Minimum loan amount: Rs.1,799.

Maximum loan amount: Rs.5,290.

Tenure: 25 weeks.

Interest rate:

Minimum: 19.60% p.a.

Maximum: 19.70% p.a.

The loan can be taken for the purpose of purchasing a water purifier to improve their income generation capabilities and / or enhance productivity.

Mobile Phone loan:

Minimum loan amount: Rs.1,799.

Maximum loan amount: Rs.5,290.

Tenure: 25 weeks.

Interest rate:

Minimum: 19.60% p.a.

Maximum: 19.70% p.a.

The loan can be taken for the purpose of purchasing a mobile phone to improve their income generation capabilities and / or enhance productivity.

Bicycle loan:

Minimum loan amount: Rs.1,799.

Maximum loan amount: Rs.5,290.

Tenure: 25 weeks.

Interest rate:

Minimum: 19.60% p.a.

Maximum: 19.70% p.a.

The loan can be taken for the purpose of purchasing a bicycle to improve their income generation capabilities and / or enhance productivity.

Sewing Machine loan:

Minimum loan amount: Rs.1,799.

Maximum loan amount: Rs.5,290.

Tenure: 25 weeks.

Interest rate:

Minimum: 19.60% p.a.

Maximum: 19.70% p.a.

The loan can be taken for the purpose of purchasing a sewing machine to improve their income generation capabilities and / or enhance productivity.

Swarna – Pushpam Gold Loan:

Minimum loan amount: Rs.2,000.

Maximum loan amount: Rs.2,00,000.

Loan processing fee: 0.5% of the disbursed value.

There are no fees or charges for late payments.

There are no fees or charges for pre or part closures.

There are 2 Swarna – Pushpam plans – SP3 and SP4:

SP3 scheme has a maximum exposure of 68% of the loan to the gold value for that day.

SP4 scheme has a maximum exposure of 75% of the loan to the gold value for that day.

Tenure:

SP3: 365 days.

SP4: 270 days.

Interest rate:

SP3

Tenure

0 – 30 days

31 – 90 days

91 – 180 days

181 – 360 days

Interest rate

15%

20%

22%

24%

SP4

Tenure

0 – 30 days

31 – 90 days

91 – 180 days

181 – 360 days

Interest rate

19.20%

21%

24%

26%

The company will charge additional interest in the form of overdue interest if the loan has not been repaid on the same terms as it was taken on, within the applicable tenure.

Repayment method: Bullet repayments are allowed, with the flexibility to repay and amount at any time till the total outstanding has been paid off, within the tenure.

Documents required:

Identity Proof: A proof of identity issued by a competent and legitimate government authority.

Address Proof: A proof of address issued by a competent and legitimate government authority, or any proof of address that contains the borrower’s name.

Age Proof: A document that testifies to the applicant’s age.

Other documents as may be required on an individual basis from the bank after assessment of candidate.

The purpose of this loan is to help borrowers meet liquidity needs with a loan against the security of the borrower’s gold.

News About SKS Microfinance

Microfinance Loans in India grew by 29%

Microfinance Institutions Network (MFIN) stated that microfinance in India grew by 29% in the first quarter of this financial year. MFIN and NBFCs (non-banking finance companies) together stated that they will be releasing their 18th Micrometre report about this industry soon. They further stated that the microfinance industry has seen an enormous growth in the last one year and has expanded their beneficiary base by establishing many branches in India. Ratna Vishwanathan, Chief Executive of MFIN added that the industry has also grown in terms of loan disbursements. Total number of loans disbursed has increased by 29% compared to last year. Another MFIN stated that the major challenge faced by micro-credit sector in India is to increase the funds in the system.

16th September 2016

SKS Microfinance has changed its name to Bharat Financial Inclusion Ltd

Bharat Financial Inclusion Ltd is the new name that SKS Microfinance will carry going forward. This name change is effective from June 13th, 2016 after the Government approved the same. Bharat Financial Inclusion is currently the only company listed in the micro financing segment. It has a wide network across 18 states and caters to 63.65 lakh women members. The name change has been done to give the company a new identity and to reach out to a larger national network.

20th June 2016

100 Traders Receive Micro-Finance Loans in Madurai

A set of micro-finance loans have been distributed in Madurai by Cooperative Minister Seller K. Raju. While 100-odd traders received loan approvals for Rs. 5,000, two farmers received Rs. 50,000 under personal accident insurance scheme. The minister said so far 7,076 special camps have been conducted in Tamil Nadu to identify beneficiaries under the Amma Micro-Finance Scheme. The government has received 4,47,787 applications, of which 93,780 persons have received a total amount of Rs 46.94 crore as loan through various cooperative banks. In Madurai alone, 3,912 applicants have received these loans Under the MUDRA scheme, the government extends bank loans of up to Rs. 10 lakh to women without any collateral security. The Jan Dhan Yojana for women would also facilitate their progress and financial security, she said.